Oil rising on concerns about Libya

Oil prices are climbing as traders prepare for prolonged fighting in Libya and continue to worry about supply disruptions that might occur elsewhere in the region.

Benchmark West Texas crude for May delivery gained $US1.81, nearly 2 per cent, at $US103.68 on the New York Mercantile Exchange.

International forces including the US smashed Libya's air defences over the weekend, and a top French official said on Monday that international intervention could last "a while".

Oil traders said they're increasingly concerned about political stability in North Africa and the Middle East, which produces 27 per cent of the world's oil. The Libyan uprising has halted that country's exports, and experts said it's unclear when oil shipments will return.

Trading in April crude ends on Tuesday. That contract rose $US1.33 to $US102.40 on the Nymex.